Now care homes to be forced to open books

CARE homes would be monitored by a financial watchdog under new proposals designed to protect residents if a provider fails.

Care homes would be monitored by a financial watchdog under new proposals []

They are part of a range of ministerial plans to avert another crisis such as last year’s collapse of Britain’s biggest care homes operator, Southern Cross.

Care and support minister Norman Lamb said the company’s demise, crippled by a £250million rent bill just as councils sought to cut fees in the wake of the credit crunch, showed the need for “greater oversight of providers’ finances”.

It left 30,000 vulnerable elderly people in turmoil.

He widened his concerns to cases of abuse uncovered at care homes.

Mr Lamb said: “I just have a sense that the whole regulatory model for the care sector is not actually yet fit for purpose.”

He added: “We want to make sure every person receiving care and support will continue to get the care they need if a provider exits the market, regardless of whether they are paid for by the state, or pay for care themselves. Southern Cross demonstrated that we need greater oversight of providers’ finances and better plans to support people if their independent provider goes out of business.

I just have a sense that the whole regulatory model for the care sector is not actually yet fit for purpose

Norman Lamb

“We want to make sure care providers have plans in place to get their finances back on track and, if this is not possible, then a co-ordinated exit from the market happens.

“This will mean care service users know their needs will continue to be met.”

Dr Peter Carter, chief executive and general secretary of the Royal College of Nursing, said: “It is right that robust plans are put in place to minimise the risk of services failing and that there is scrutiny of their business models.”

She asked if the Care Quality Commission or Monitor (which regulates NHS foundation trusts) “has the skills, experience or resources to scrutinise the financial structures of companies, or the power to take effective action to prevent financial failure.”